US Treasury Boosts Long-Term Bonds Amid Rising Borrowing Costs

The US Treasury announced that it would 'at least double' the amount of long-term bonds to push down borrowing costs, which had surged to near two-decade highs.

This move was seen as a surprise and provided a much-needed boost for investors who were worried about inflation staying elevated and possible Federal Reserve interest rate hikes.

The US equities market reversed losses to end higher, while the US dollar tumbled against its peers after the announcement.

The yield on a 30-year US Treasury had hit its highest level since June 2007 before the global financial crisis, causing fears of inflation and government borrowing costs.